In this clip from The Call @ Hedgeye, Gaming, Lodging and Leisure analyst Sean Jenkins highlights the impact of higher input costs on Vegas and his overall outlook for the sector within the current quad shift.
“The Las Vegas strip is probably the single biggest beneficiary of falling input costs,” explains Jenkins. “The Las Vegas strip does back test extremely well on a more near term sort of 10-15 year back test, which is the best out of all of our subsectors in GLL.”
“Really what’s shown to drive RevPar growth right now (and what continues to) is the weekends. You are seeing explosive growth. Who knows if this latest COVID scare is going to derail all that, really the only thing we’ve gotten wrong on hotels from a data perspective is that we haven’t been bullish enough on the US leisure consumer.”
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